Susan Kilsby, agriculture economist at ANZ, points out that June delivered an unadjusted monthly trade balance of $365m for the NZ economy, more than double the revised surplus for the previous month.
Key Quotes
“On a seasonally adjusted basis, exports increased by 0.6% m/m while imports fell 4.0% m/m. Imports were driven down by a 34.4% fall in the value of petrol and petroleum products imported. Imports of machinery were also weak, down 12.6%, with a sharp reduction in the value of textiles and plastics as well.”
“The trend towards exporting more product to China continues. Exports to China have increased by 23.6% in the past 12 months. This has primarily been driven by additional exports of logs and meat to this market, while it remains the largest market for dairy products.”
“Looking forward, we expect to see export volumes weaken further in July as the volume of dairy and meat production is at its seasonal low and the felling of trees slows due to the recent fall in log prices.”
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